§ 45-92. Obligation of servicer to handle escrow funds. - North Carolina Statutes

§ 45‑92.  Obligation ofservicer to handle escrow funds.

Any servicer that exercisesthe authority to collect escrow amounts on a home loan held or to be held forthe borrower for insurance, taxes, and other charges with respect to theproperty shall collect and make all payments from the escrow account, so as toensure that no late penalties are assessed or other negative consequencesresult. The provisions of this section shall apply regardless of whether theloan is delinquent or in default unless the servicer has a reasonable basis tobelieve that recovery of these funds will not be possible or the loan is morethan 90 days in default. (2007‑351, s. 5.)